New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-08-19

oolv bv the expectation Of the partial failure OF tht
California crop or of or famine in Europe. The
Produce Exchange here was amazed to see men like
Dresbach and Rosenfc!d buying n one day II ore
wheat than they could have paid for with theiI
combined fortunes The rumo-s that they were be
my favored with heavy loans by the Nevada Banl
attracted the attention of the bank examiners anC
Mt their semi-annual inspection they devoted
special care to the examination OF these accounts
And this, according to the story told in banking
circles was the result of their investigations
They found Dresbach had been favored with adj
vauces Of between one and two millions, with nc
apparent security. They appealed to the manager
of the bank. who said jauntiy "Oh, these loans
are fully secured" But" said the amszei exam
Iner, / want to this security this guarah'eo
which induces you TO make such extraoidina'y
loans 10 a man who is a mere specuator' Ai'oi
some hesitation the manager produced the "r'''oh
guarantee of John w. Mackay. declaring tna' nc
would be responsible for all loans maze ny tho
bank to William Dresbach. When the eAa."i"e,
cam. 70 the account of John Roscnfcld he found
precisely the same large loans without any COL
lateral security. Again the manager was called IN
and a SECOND time he assured the investigator that
everything was all right by pI OducIng the written
guarantee signed by James c. Flood. that he would
be responsible for ali loans made to john Rosen-
field The examiner could scarcely believe his
senses but there the documents were. all II proper
and legal FORM by which the heads of great bank
guaranteed irresponsible spectators for advances
of between three and four millions on wheat with
in three months.
Dresbach and, Rosenfeld are two German Jews,
well known as spectators in wheat and st ocks.
They have never been credited with any financial
genius but they have acquired Importance during
the last three years as the agents OF the Nevada
Bank. 1t was absurd, to any one who knew their
small resources to claim that they were buying up
the wheat crop of California on their own account !;
yet Flood and his associates have declared over and
over again that neither they IN person nor the
bank had any interest in the wheat transactions
of the two leading bills. THESE positive den'als
mysiied but did not convince the Street, and they
had a tendency to increase the nervousness OF
brokers and to precipitate panic, in case of any
sudden collapse such as occurred at Chicago. The
subsidized newspaper organs or the Nevada Bark
continued to declare that the deal was on SO sound
n basis that nothing could shake it, although then
wheat was 80 cents higher here than in Chicago.
and rs cents higher than in Liverpool.
Meanwhile the demands on the bank for coin TO
buy the immense quantities of wheat offered to
the ring we're great that Flood was forced to get
loans from his intimate personal friends on gilt
edged securities for collateral. With tLese alone
could he secure any advances from other banks,
WHOSE managers feared the entire collapse OF the
wheat ring. This the desperate situation of
affairs behind the scenes while Dresbach aud
Posenfeld jaunt'ly paraded through the Call Board
ami bought every bushe of wheat offered to them.
On the fat heavy features of Dres5ach there was
perennial smile as though he as hugging himself
over the huge joke of paving the horny-handed
farmer good dollar moro for his wheat than it was
orth in the big grain markets of the world. Then
began wild "suuealing" of the shorts who had
counted on the downfall OF the ring and who
couldn't secure for love money single bushel OF
wheat to fill their contracts. The Napoleonic Ores
bach stood ty his avorte pillar near the wheat pit
and goated over their agony Every day he turned
Che screws little tighter and added to the torture
of the wretched shorts" Rosenfed kept more 10
the background, but he was no less active than his
partner in the work OF worrying the small fry. lie
has lean and hungry look, which grew more pro-
nonnced as the excitement increased in the wheat
pit The price went up from 81 20 to 81 90; then
to 50, the point which had been decided on the
ultimate limit of the deal. But still the wheat
can pouring in and to prevent the filling of short
contracts the price was showed up higher. Day by
day it rose, each advance seeing the shorts turn
over heavy cash payments to Dresbach for margin.
This money was at once used to buy more wheat,
and so the process went on To guard against any
possib lily of defence on the part OF the shorts
Dresbach secured the amendment of rule OF the
Produce Exchange, and it was ordered that no
wheat should be sold in less than 1OOtoD lots and
that cash should be paid on delivery. This
complete Knockout for the dealers and put them
all at the mercy OF the ring Thousands of dollars
were put mp to satisfy margins, yet still the price
was advanced. On July 80 it touched the extraor
binary price of 50 10 and ON the Monday follow
ing it reached Sc per GENITAL, fully 20 per cent
above its present price in the English II arket.
Brokers stood aghast and alpredicted crash which
would rival the collapse at Chicago The end came
on August 3, when panic was only ayerted by the
GOODNESS and judgment of the big bear operators,
who agreed to the compromise offered by Dresbach
and Rosenfed. This that an extension CT time
be granted ON Call Board contracts for which they
agreed to pay 10 cents per Genital to sellers and to
take delivery from sellers in monthly lots of one
quarter each. at 81 20 per Genital AS secnrity for
this msrgining down they agreed to deposit 10000
bushels of wheat, the proceeds to be paid to sellers
should they default on their margins. This
promise was accepted by all but few brokers and
IL is expected that crash will be averted. There
much discomfort, however the settlement.
The sum of 100000 of margins has been with
drawn, but although Rosenfeld has declared that
his contracts call for only 100000 tons, 1t is
notorious that the ring holds between 100000 and
100000 TONS The last few days have been spent
ia vain endeavor to straighten out the tangled
accounts Of the wheat brokers and ascertain who
is solvent The W ork seems to have peculiar diff
culiies, as no great Roadway has been made aud no
business Whatever has been transacted at the Cali
Board.
The effect of this heavy strain has told all the
members of the bonanza clique. Flood who has
been suffering for months from Bright's disease,
has been unable lately to leave his country villa at
Menlo Park. The grave malady OF the kidneys lie
aggravated by constant anxiety, and he is still
further worried by an annoying complaint known
rs govt of the eye. When on the street last
week his sallow sunken cheeks and lack-,ustre eye
betrayed the mental and physical suffering which
he hao endured. He sends his daughter Jennie up